CRM Rising: FYQ3 Beats, Q4, 2014 Views Light

By Tiernan Ray

Shares of Salesforce.com (CRM) are up 10 cents in late trading at $146 after the company this afternoon reported fiscal Q3 revenue and profit per share that topped analysts’ estimates, projected this quarter’s results below consensus, and forecast fiscal 2014 revenue a slightly below expectations as well.

Revenue in the three months ended in October rose 35%, year over year, to $788 million, yielding EPS of 33 cents, excluding some costs.

Analysts had been modeling $777 million and 32 cents.

Including charges of $149 million for the establishment of tax valuation allowance, and $105 million in stock options expense, plus other expenses, the company would have had a net loss of $1.55 per share in the quarter.

Salesforce generated $106 million of cash in the quarter, bringing total cash and equivalents at quarter’s end to $1.4 billion.

For the current quarter, the company sees revenue in a range of $825 million to $830 million, and EPS of 38 cents to 40 cents, which is slightly below the average $829.97 million and 40 cents consensus.

For the full year, the company projects revenue of $3.8 billion to $3.85 billion versus the average $3.83 billion estimate.

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There are 2 comments

NOVEMBER 20, 2012 4:36 P.M.

salesforce.com lost $155 wrote:

" the company would have had a net loss of $1.55 per share in the quarter."

What would have? They did lose $1.55 per share.

This acting like gaap does not matter is a joke. Show me how a company pays non-GAAP distribution. How long can a company run if they spend more than they make?

Come on state facts. Not only have they lost a ton of money $1.55 per share, they now have 142 million shares out sending, last quarter was 139 million. 3 million shares where given away.

How do the investors feel? salesforce insiders are selling stock like made, making huge profits this is the 3 million shares they gave away. And salesforce.com has lost money, and the stock has not appreciated in 18 months. Why should it appreciate, their numbers have gotten worse and worse.

NOVEMBER 21, 2012 9:54 A.M.

Anonymous wrote:

Couldn't agree more -- a $20+billion compnay that can't earn a single penny of GAAP earnings. Simply amazing.

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Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.